Second quarter financial highlights shared by Discovery reveal that ad revenue dropped by 14%, while TLC delivered its best quarter to date.
Total revenues of US$2.54 million represented a decrease of 12% compared to the prior year quarter, for the company whose portfolio of channels includes Discovery Channel, HGTV, Food Network, TLC, Investigation Discovery, Travel Channel, MotorTrend, Animal Planet, Science Channel, and OWN: Oprah Winfrey Network.
As for TLC, the popularity of the 90 Day Fiancé franchise brought about the best quarter in the network’s history. Discovery said it was the top network across all of TV on Sunday nights among W25-54, P25-54, and W18-49.
The company saw an overall revenue decrease of 6% from 2019′s second quarter, a it is chalking up to an advertising decrease caused by the COVID-19 pandemic. To a lesser extent, the decrease is also caused by declines in the pay-TV ecosystem and lower inventory.
Net income dropped $271 million from $947 million, compared to last year, while free cash flow was $879 million.
Subscriptions to the fully distributed networks also dropped 5% lower than last year, as distribution increased 7%.
Discovery’s international portfolio showed a strong share growth in India, UK and Italy, with total share of viewing improving 4% on average. In the U.S., the company says it’s gained more share in primetime compared to other TV portfolios in the target demos.
“Our top priority is the health and safety of our employees as global economies and our offices begin to reopen,” said David Zaslav (pictured), president and CEO of Discovery, in a statement. “We generated significant free cash flows in Q2, demonstrating the durability of our business, especially against the backdrop of a historic disruption to the global advertising market due to the impacts of the pandemic. With our significant liquidity cushion and the initial signs of stabilization that we’re seeing in many of our key markets around the world, we are pleased to announce our intention to resume returning capital to shareholders through share repurchases.”